QUESTION IMAGE
Question
improvements in the health of the average american caused the u.s. production possibilities frontier to shift out primarily by
a. accelerating technological progress.
b. increasing the countrys effective wo
c. raising the capital - labor ratio.
d. encouraging more consumption.
life expectancy in the united states declined 918 and 2020 - 2021. this decline likely caused the u.s. production possibilities frontier to shift because it signified a resource base made smaller by a less effective.
Brief Explanations
- For the first part: When the health of the average American improves, workers can be more productive. An increase in the effective workforce (more productive workers) leads to an outward shift of the production - possibilities frontier. Technological progress (A) is about new methods/tech, capital - labor ratio (C) is about the proportion of capital to labor, and more consumption (D) is related to demand - side, not directly to the productive capacity in terms of workforce effectiveness.
- For the second part: A decline in life - expectancy implies a less effective workforce (as workers may be less healthy, have shorter working lives etc.). A less effective workforce reduces the productive capacity of the economy, causing the production - possibilities frontier to shift inward.
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- First question: B. increasing the country’s effective workforce.
- Second question: inward, workforce.